2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
Healthy result despite economic recession
Rotterdam, 06 August 2009
Harbour Towage result significantly affected by decline of world trade
Sharp profit growth Terminals
High result Salvage due to settlement prior year cases
Transport activities remain at high level
Good vessel utilisation Heavy Lift
Mid-year results 2009
Net profit rises 9% from EUR 47.7 million (including non-recurring items) to EUR 51.9 million.
Non recurring income from settlement “Thunderhorse” amounting to EUR 10 million net of taxes.
EBITDA (including associated companies) rises 15% from EUR 90.2 million to EUR 103.7 million.
Operating result increases 12% from EUR 49.0 million to EUR 54.9 million.
Result from associated companies increases by 8% from EUR 11.8 million to EUR 12.8 million.
Net earnings per share increases by 3% from EUR 2.74 to EUR 2.82.
It is expected that the net profit in the second half year will be in line with the first half year, excluding the non-recurring income from the “Thunderhorse” settlement.
Ben Vree, SMIT CEO, commented as follows: “We are happy being able to present healthy figures and an increased financial result for the first half of this year. Due to a close focus on our cash flow we have been able to further enforce our balance sheet. Of course the ongoing recession has an impact on our activities as well. The significant decrease in ship movements resulted in a sharp decline of the operating result of the Harbour Towage Division while the spot related activities of the Transport & Heavy Lift Division are affected as well. The strategy which is based on sustainable growth and stability is paying well off. The Terminals Division as well as the long term contracts within the transport activities are performing very well despite the economic downturn. We are therefore confident that the net profit in the second half year resulting from normal activities will be in line with the first half year, excluding the non-recurring income from the “Thunderhorse” settlement."
Overview of operating result per Division EUR (in millions)
30-6-2009 30-06-2008
Harbour Towage 7.9 17.7
Terminals 8.3 5.2
Salvage 19.8 7.7
Transport 18.0 19.7
Heavy Lift
Holding 4.1
-/-3.2 0.6
-/-1.9
----- -----
Group operating result
Result of associated companies
Group operating result
(including associated companies)
54.9
12.8
-----
67.7
===
49.0
11.8
-----
60.8
===
Harbour Towage Division
Harbour towage services and related maritime services.
Revenue: EUR 77.6 million (H1 2008: EUR 94.7 million)
Operating result: EUR 7.9 million (H1 2008: EUR 17.7 million)
ROACE: 6% (H1 2008: 20%) Target is a ROACE of 15%
Result of associated companies: EUR 5.0 million (H1 2008: EUR 1.6 million)
Due to a decline in worldwide shipping traffic, revenues for the harbour towage activities decreased significantly in the first half of 2009. The throughput in the main ports where SMIT operates dropped considerably, particularly in Antwerp, Rotterdam and Vancouver. As a consequence of the recession the profit margin of the harbour towage companies decreased.
Measures have been taken to reduce the cost base of our existing operations by repositioning harbour tugs to new locations. As of January 2009 harbour towage activities are performed in the port of Taipei (Taiwan) with five harbour tugs through a new joint venture company. Furthermore the set up of a new joint venture in Lithuania has been finalised in May 2009 and three SMIT tugs were brought into the joint venture.
The performance of the associated companies improved sharply compared to last year. In Brazil the fleet of harbour tugs has grown with 4 tugs to 19 vessels as at 30 June 2009, which resulted in a higher profit contribution compared to last year. The joint venture, Rebras, is currently providing harbour towage services in 4 ports in Brazil. The joint venture in Singapore also realised a higher profit due to additional income from services rendered for special projects in South East Asia.
In the first half year agreement was reached on the acquisition of 100% of the shares in Minette Bay Ship Docking. This company operates three harbour tugs in Prince Rupert, Canada. The acquisition is still subject to approval by the Competition Authorities in Canada. This acquisition will be integrated with the existing SMIT activities on Canada’s West Coast.
Despite the current recession the Harbour Towage market is considered stable. SMIT set itself the target of increasing the net result in this Division by 50% over five years (starting 2007) by means of acquisitions, expansion of activities and fleet expansions.
Terminals Division
Towage services and related maritime - and management services to offshore and onshore terminals.
Revenue: EUR 47.2 million (H1 2008: EUR 32.5 million).
Operating result: EUR 8.3 million (H1 2008: EUR 5.2 million).
ROACE: 14% (H1 2008: 13%). Target is an ROACE of 15%
Result of associated companies: EUR 2.6 million (H1 2008: EUR 0.4 million)
Terminals realised a sharp increase in profit in 2009. This profit growth is a consequence of the contribution from new contracts that commenced in the second half of 2008 as well as the profits realised on a “frontrunner” contract which started at the beginning of this year. The operations that started in the second half of 2008 are terminal contracts in Pakistan, Gabon, the Bahamas and Kuwait. The “frontrunner” contract relates to the provision of four terminal tugs in Indonesia, which were transferred from the Division Harbour Towage.
The terminal operation in the Bahamas, which has included the operation of a bunker barge since last year, will be expanded by an additional (4th) tug in the second half of 2009.
The 25 year contract for an LNG terminal in Italy has not started yet due to delays in building the LNG terminal. However, the tugs that have been delivered are already on charter. It is expected that the LNG terminal will become operational in the third quarter of 2009. The joint venture will operate 4 tugs for this terminal.
The increased growth target for net profit is 100% over a five-year period (starting 2007).
Salvage Division
Salvage, wreck removal, environmental care and consultancy.
Revenue: EUR 46.7 million (H1 2008: EUR 51.0 million).
Operating result: EUR 19.8 million (H1 2008: EUR 7.7 million).
Net production ratio: 55% (H1 2008: 26%). Target is a net production ratio of at least 10%.
Result of associated companies: EUR 0 million (H1 2008: EUR 0.5 million).
Historical average operating result for the full year 2009 amounts to EUR 18.8 million.
Salvage realised an exceptionally high profit in the first half of 2009. This result has been influenced by the settlement of salvage cases from previous years. The main contribution came from the settlement of the “Thunderhorse” project (Gulf of Mexico, 2005) which had an impact of EUR 10 million on net profit.
The workload in the first half year was limited and was clearly below the historical average. However, during the third quarter we are experiencing an increase of workload.
The major projects in the first six months of the year were:
• “Ameglia Star